EMERGING MARKETS-Brazilian real weighs on Latam FX, Mexico's peso up ahead of rate decision

* Consumer prices in Brazil up 0.53% in Jan amid govt, c.bank feud * Mexico annual inflation rate slightly increased to 7.91% in Jan * Bank of Mexico expected to hike by 25 bps - poll * Emerging market stocks fall 0.9%, FX off 0.4% By Bansari Mayur Kamdar Feb 9 (Reuters) - The Mexican peso rose on Thursday ahead of its rate decision later in the day, when the Banxico central bank is expected to raise rates by 25 basis points, while Brazil's real fell after mixed economic data. The real slid 1.3% against the greenback. Brazil's consumer prices rose 0.53%, slightly less than expected, in January, but the data is unlikely to give the central bank room for monetary easing in the short term despite President Luiz Inacio Lula da Silva's calls for lower rates. Another survey showed retail sales volumes in Brazil posted in 2022 their smallest annual growth in six years, providing further signs of a slowing economy amid tighter monetary conditions. The MSCI's index for Latin American currencies slipped 0.4% by 1501 GMT. The Mexican peso gained 0.2% against the dollar ahead of its rate decision later in the day. The Bank of Mexico is expected to hike its benchmark interest rate by 25 basis points to a record 10.75% at 1900 GMT, amid a forecast increase in January inflation and following in the footsteps of the U.S. Federal Reserve, a Reuters poll showed. Meanwhile, data showed Mexican consumer prices rose 7.91% in the year through January, slightly higher than Reuters analysts had predicted. "The combination of a moderate rise in inflation, a small step and a hawkish-sounding statement in which Banxico signals further interest rate steps seems more likely to us," said Elisabeth Andreae, FX analyst at Commerzbank Research in a note. "Since much seems to be priced in already, potential peso gains should be limited." Chile's peso rose 0.6% to 795.4 against the dollar, limiting losses on the currency index, while the Colombian peso added 0.7%. Peru's sol edged 0.1% up against the greenback, ahead of its central bank rate decision due at 2300 GMT where it is expected to hike rates by 25 basis points. The MSCI's index for Latin American stocks declined 0.9% as weakness in Brazil's Bovespa index weighed on the index. Elsewhere in emerging markets, South Korea's plans to loosen restrictions on its currency market will raise the won's status globally and boost business opportunities for local financial firms, a vice finance minister told Reuters. India's Adani Group faced fresh concerns after financial index provider MSCI said it was reviewing the free float designation of some group company securities. Istanbul's stock exchange operator suspended trading until Feb. 15 and canceled all of Wednesday's trades following devastating earthquakes that struck Turkey and Syria. Romania's central bank kept its benchmark interest rate on hold at 7.0%. Key Latin American stock indexes and currencies at 1445 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1026.59 0.59 MSCI LatAm 2215.66 -0.66 Brazil Bovespa 109271.15 -0.62 Mexico IPC 53298.36 0.33 Chile IPSA 5348.68 0.37 Argentina MerVal 252504.91 0.951 Colombia COLCAP 1261.18 -0.23 Currencies Latest Daily % change Brazil real 5.2673 -1.37 Mexico peso 18.8870 0.23 Chile peso 795.6 0.43 Colombia peso 4743 0.49 Peru sol 3.8608 -0.40 Argentina peso (interbank) 190.1800 -0.17 Argentina peso (parallel) 379 0.53 (Reporting by Bansari Mayur Kamdar in Bengaluru; editing by Jonathan Oatis)